Myths about Extended Warranty Auto Repair Insurance
Auto repair insurance policies are commonly misunderstood. Because of these misunderstandings, many people have to pay out of pocket for expensive car repairs. Make a good decision regarding your vehicle, by knowing some of the different myths about auto repair insurance policies.

You Do Not Need More Insurance
With the amount of insurance that people have today, car, health, home and life, is there really a need for more insurance? Typically your car already has a warranty, as well as collision coverage. For new vehicles, this is great. When you buy a used car, you are typically given a short term warranty, with limited coverage for only three months. After this, if you do not buy an extended warranty, you will be liable for any repairs needed. In the case of transmission, drive train or engine replacements, this can be in the thousands of dollars. Auto repair insurance helps protect you in the event your used car needs repairs after the warranty expires.

Auto Repair Insurance Is Just an Extended Warranty
Many people do not realize that there is a difference between an extended warranty and car repair insurance coverage. A warranty is for a specified period. Even an extended warranty will run out after time, depending on the age of the vehicle. Auto repair car insurance is available for as long as you need it. You can continue to keep the policy regardless of the age of your vehicle.

Auto Repair Insurance Only Covers Part of the Repair
A common myth is that when you bring in your car for repair, you will still have to pay for part of the charges. While this is true of some policies with a deductible, you can also purchase auto repair insurance policies that pays for the entire repair bill. When you have a $4,000 bill for a new transmission, this can be a lifesaver.

Auto Repair Insurance Does Not Pay for Existing Problems
A lot of people try to get auto repair insurance when they know that their vehicle is going to require costly repairs. While being unethical, it is also not going to work. Many companies require you to state your current vehicle’s condition, as well as have a time period before any claims can be made.

I Have No Say How Repairs Are Done
That is not entirely true. When you take your car in for repairs, you can state what you want done or what types of parts you want to use. This will save you on any penalties that are included with expensive repairs.

Everything Is Covered with Auto Repair Insurance
A common myth is that your entire vehicle is covered with auto repair insurance. Like most warranties, the coverage is limited by the policy. If your policy covers the failing of any transmission, engine or drive train components, then you will not be covered for any brake problems. There are different types of coverage at different costs for limited or full coverage.